Major Factors that Affect Cell Tower Lease Buyout Values

Comparison of Cell Tower Site Lease Buyout Values
Here are some examples of cell tower sites, equipment, and lease terms, that have the greatest affect on the buyout value.

Valuation Chart for Determining Cell Tower Lease Values

Time remaining until the expiry date of the cell tower lease.

Most buyers of cell towers and cell tower leases want to re-negotiate the lease as soon as possible. This makes shorter remaining lease terms more attractive and more valuable.

increases lease value
Little Time Left

decreases lease value
A Lot of Time Left

Number of wireless tenants or carriers on the tower site, or rooftop.Pretty simple, more cell carrier tenants = more rents received = higher lease value

increases lease value
More Tenants

decreases lease value
Fewer Tenants

Type of wireless tenants or carriers on the cell tower site or rooftop.There are different tiers
of carriers based on credit rating, size, etc.

increases lease value
Top Tier AA Rated Carriers

decreases lease value
Bottom Tier and
Non-investment Grade

Right of First Refusal in Master Lease.Master lease can contain a Right of First Refusal Clause that allows the tenant the right to match a purchase offer in price and term to protect their asset from sale to a third party.

increases lease value
No

decreases lease value
Yes

CONSENT in Master Lease.Some Master Leases contain a consent clause that requires the carriers consent on the sale of the lease. This is not to be "unreasonably denied" but does add an unknown sale-ability factor.

increases lease value
No

decreases lease value
Yes

Lease provides for Co location Rent Increases.The master lease is written to provide rent increases for every tenant that is added.

increases lease value
Yes

decreases lease value
No

Lease Provides for Revenue Share.The master lease is written to provide a percentage of the overall monthly or yearly revenue to the site owner.

increases lease value
Yes

decreases lease value
No

Current Leased Area is Full and Has no More Space for Equipment.Any additional space that is needed will increase the monthly rental amount to the site owner.

increases lease value
Yes

decreases lease value
No

Current Tower/Rooftop Has a Direct Carrier Overlap.Consolidation is an on going occurance with the carriers. Current overlaps include Tmobile/Metro, AT&T/Cricket, Sprint/Nextel.

increases lease value
No

decreases lease value
Yes

Lease Provides for Rent Increase Due to Technology Upgrade.Master leases are sometimes written with language to provide additional rent to the site owner if upgrades are made to the site, especially if the upgrade requires additional space.

increases lease value
Yes

decreases lease value
No

Lease Escalation Rate. Each lease is different, but obviously the higher the increase, the higher the value of the lease.

“I recently had the benefit of working with Michael Lemay, Owner of Wireless Investment Group, LLC, on the sale of a rooftop lease assignment. Michael and his company provided a knowledgeable and streamline approach for the sale of my rooftop lease, while providing me with purchase price that beat the competition. They delivered in a timely manner and Michael was available at every step of the process to make sure things went smoothly. Based on this experience, I recommend Michael and Wireless Investment Group.”